YOUNGSTOWN, Ohio (WYTV) – People in Ohio who work minimum wage jobs will be seeing more in their paychecks this year.
But, what does that mean for Ohio businesses? And could it mean fewer jobs in the future?
The small increase will boost a minimum wage worker’s pay from $8.15 to $8.30. It will affect about 150,000 workers across Ohio.
For a person working full time at a minimum wage job, it’s an extra $312 per year.
The pay raise comes from a 2006 amendment that annually increases minimum wage based on the consumer price index.
Other states have different plans to combat rising inflation, for example, California.
California Gov. Jerry Brown signed a bill in 2016 that puts the minimum wage on track to reach $15 an hour by 2022.
“I think that’s fair because the cost of living out there is higher than our cost of living, so I think it balances out,” said local worker Janice Semple.
It could mean more pay for the workers, but also fewer workers. Brian Laraway of Bury Financial Group says there could also be more automation or people going across the border for work.
One study says the state could lose as many as 400,000 jobs by 2022 with the pay raise.
“You would see people laid off, hours cut back or maybe a person staying on but taking on multiple positions,” Laraway said.
He believes minimum wage jobs are a good starting point for workers, but there should always be the desire to move up in the industry you’re working in.
Laraway says to ask yourself, “is this good for me? Do I like this? Do I want to continue working here? Do I see myself here? What do I need to do to move up?”